Saudi Arabia to invest $25 Billion in Pakistan; Revival of privatization process planned
Shafaq News/ Pakistan's Caretaker Prime Minister, Anwar ul Haq Kakar, announced on Monday that Saudi Arabia is set to inject approximately $25 billion into Pakistan's economy over the next five years. These investments will encompass various sectors, representing a significant economic boost for the country. Additionally, the government aims to revitalize the currently stalled privatization process as part of its economic recovery efforts.
The South Asian nation has embarked on a challenging path toward economic revitalization, guided by its caretaker government. Pakistan recently averted a sovereign debt default with the assistance of a $3 billion loan approved by the International Monetary Fund (IMF) in July, demonstrating its commitment to restoring economic stability.
Prime Minister Kakar, speaking from his official residence, detailed that Saudi Arabia's investments will be directed towards key sectors such as mining, agriculture, and information technology. These strategic choices align with Pakistan's broader objective of attracting higher foreign direct investment (FDI) levels to fuel economic growth and development.
There has been no official response from the Saudi government regarding Kakar's statements. However, if confirmed, this sizable investment from Saudi Arabia will represent the largest-ever commitment of funds from the Kingdom to Pakistan.
The infusion of foreign capital and renewed privatization efforts are expected to play a pivotal role in Pakistan's ongoing economic recovery journey, supporting its efforts to strengthen its fiscal position and foster sustainable growth.
It is noteworthy that Saudi Arabia and Pakistan have close relations. The two countries are members of the Organization of Islamic Cooperation (OIC) and the Gulf Cooperation Council (GCC). They have also cooperated on many issues, including security, trade, and investment.
The relationship between Saudi Arabia and Pakistan has become increasingly important in recent years. This is due to several factors, including the rise of terrorism in the region, the ongoing conflict in Yemen, and the economic challenges facing both countries.
Saudi Arabia has provided Pakistan with billions of dollars in aid and investment. It has also helped to train Pakistani security forces. In return, Pakistan has provided Saudi Arabia with military support, including troops for the Saudi-led coalition in Yemen.
